By mmillikin Auto manufacturers are fully engaged in the global movement toward battery electric vehicles (BEVs) as part of their efforts to comply with emission requirements, but the transition will pressure their returns, according to a new report from Moody’s Investors Service.

Moody’s expects BEVs to represent approximately 7%-8% of global new vehicle sales by the mid-2020s, up from less than 1% currently, and rise to 17%-19% by the end of the decade as battery costs drop, driving range improves and charging infrastructure expands. Automakers will also rely on other alternative fuel technologies, including hybrids and fuel cell electric vehicles, to meet emission